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LondonlawyerJ, Advocate
Category: Law
Satisfied Customers: 823
Experience:  Solicitor with over 15 years experience.
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If I am paying a mortgage in my name but the deposit was put

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If I am paying a mortgage in my name but the deposit was put down by someone else with a contract for me to eventually pay back the deposit with 5% interest, and I had never missed a mortgage payment but now the person who lent the deposit wants all of this back and has slapped a possession order on the property! what are my rights?

The contract stated that before the 1stApril £43k of the deposit was up be paid back to the individual concerned and the mortgage holder can only raise an additional £11k so not enough. Should she cut her losses?

LondonlawyerJ :

Hello, I am a solicitor with over 15 years experience I will try to help you with this.

LondonlawyerJ :

Can you clarify some things for me please. Possession proceedings have been issued by the person who provided the deposit? Who owns the freehold? Is there a written tenancy agreement or some other agreement settign out the arangement? How much of the deposit has been paid back.

Customer: Hi,
LondonlawyerJ :

Like most lawyers ob this site I am a working lawyer and have to fit in answers here around work. I will be busy for he rest of the morning but I will look at this question again as soon as I can

Customer: this is on behalf of a friend of mine, There is an agreement which is very heavily weighted to the person who loaned the money. While my friend has the mortgage in her name he ex provided the deposit of £43k and then added onto this some gifts he had given to her during the relationship and added 5% interest compund each year. She has a mortgage for £76k which is up to date paid monthly for the last 3 years. According to the letter she owes £83k back to the lender (her ex). She signed this contract which said that she would have to pay back on the 3rd anniversary £43k, but clearly on her salary this was never going to be possible, and she signed the contact at the time facing being homeless and with a young daughter. She has offered to pay £11k which is how much the building society have said, and there is no negotiation therefore he has out a possession order on the house.
Customer: In this time they purchase the house for around £130k and it is now worth £160k, so equity which is all due to the lender has built up. My friend has been not in the best health mentally due to this, hence I am trying to support her, she does have a car which she could also sell to raise funds but this still would be nowhere near the £43k the lender requires, the judge adjourned the case last week for 2 weeks and told her to get a solicitor, but having tried a couple they have all said go to CBA?! I was going to suggest a deal whereby he pays her the mortgage amount she has paid in of £17k and she hands the keys back and I help her get her own place, but not sure that will be agreed. Thank you.
Customer: None of the deposit has been paid back as of today and deadline was 1st April.
LondonlawyerJ :

Thankyou for that information. The creditor has started possession proceedings? I think he will not succeed and unless there is something I have missed he i snot entitled to obtain possession. Has he registered a charge at the Land Registry against the property? I doubt he has the necessary consumer credit licence. He has offered a loan with interest on terms to assist in the purchase of property. It seems to me he should be licensed. He will have a great deal of difficulty enforcing an unregulated agreement like this. This is doubly true if he has added in some "gifts" to the loan amount. If they were gifts then there is no legal basis for demanding the money back. He has also deliberately entered into a harsh agreement in circumstances where he knows the lady will fail to pay him back as set out in the agreement. Even if he were licenced this would be problematic for him. He has however lent her some money to assist in the purchase of a property and must be entitled to have that paid back at some point. Not necessarily now and not necessarily with any interest though.

LondonlawyerJ :

There is a lot at stake here and I would suggest that your friend gets legal representation in the proceedings from a solicitor in the orthodox way. She is clearly up against someone quite ruthless. Is he represented by solicitors? If she has house or car insurance then she is very likely to have cover for paying legal fees.

Customer: Thank you so much, that's really great, and I had thought about the credit licence situation so will definitely get her to raise this. She has today now managed to get herself a solicitor appointment and someone to represent her, so that's great.
Customer: That at has been really helpful thank you.
LondonlawyerJ :

I am glad to have been of help and I wish your friend good luck in this. I would ge grateful if you would please rate my sevice a without a positive rating I will not get paid for the answers I have given you.

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